The Stamp Duty holiday has now ended and been replaced by a new transitional rate, HM Revenue & Customs has reminded homebuyers.
Launched last year, the relief was designed to stimulate the property market during the coronavirus pandemic.
But the Government says the sector has now sufficiently recovered, paving the way to phase out the temporary scheme.
It means the stamp duty holiday rate of £500,000 has now been replaced by the new transitional rate of £250,000, effective from 01 July to 30 September 2021.
The transitional rate will then revert to the standard rate of £125,000 in October.
The special rules for first-time buyers, however, will be reinstated from July, meaning buyers purchasing their very first property will only pay stamp duty when the purchase value exceeds £300,000.
The rate of stamp duty which applies depends on the date that you complete the property purchase – and not the date you exchanged contracts.
How has the stamp duty cut impacted house prices?
According to the latest statistics, house prices rose by almost 9% over the last 12 months, up £21,000 compared to the same period last year.
But prices dipped 0.5% in June ahead of the transitional rate of stamp duty coming into force.
Halifax, who published the figures, said: “The power of homemovers to drive the market won’t fade entirely as the economy recovers.
“Coupled with buyers chasing the relatively small number of available properties, and continued low borrowing rates, it’s a trend which can sustain high average prices for some time to come.”
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